abrdn Income Credit Strategies Fund Announces Update and Tentative Closing Date for Acquisition of Assets From First Trust/abrdn Global Opportunity Income Fund

Rhea-AI Summary

abrdn Income Credit Strategies Fund (NYSE:ACP) has announced that shareholders of First Trust/abrdn Global Opportunity Income Fund (NYSE:FAM) have approved the proposed reorganization into ACP. The reorganization is targeted to complete by the end of September 2024, subject to closing conditions. FAM shares will cease trading on the NYSE, and shareholders will receive new ACP shares based on relative net asset values. Post-reorganization, ACP's combined net assets are estimated at $830 million.

The reorganization aims to benefit shareholders through economies of scale, increased fund size, enhanced liquidity, and improved marketability. It's expected to ensure the viability of the resulting combined fund. The press release emphasizes that this information is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy securities.

Positive

• Shareholders approved the reorganization, indicating investor support
• Combined net assets post-reorganization estimated at $830 million, potentially increasing fund's market presence
• Expected benefits include economies of scale, increased liquidity, and improved marketability
• Reorganization aims to ensure long-term viability of the combined fund

Negative

• FAM shares will cease trading on NYSE, potentially affecting short-term liquidity for current FAM shareholders
• Reorganization subject to closing conditions, introducing potential for delays or complications

PHILADELPHIA, PA / ACCESSWIRE / July 26, 2024 / The Board of Trustees of abrdn Income Credit Strategies Fund (NYSE:ACP), announces today that shareholders of First Trust/abrdn Global Opportunity Income Fund (NYSE:FAM) ("FAM" or the "Acquired Fund") advised by First Trust Advisors L.P. have approved the proposed reorganization into ACP ("Reorganization") which is targeted to be completed before the end of September or as soon as practicable thereafter, subject to the satisfaction of customary closing conditions.

To facilitate the Reorganization, all shares of FAM will cease trading on the New York Stock Exchange as of date to be announced in the coming weeks and FAM shareholders will be issued new issued shares of ACP. The Reorganization will occur based on the relative net asset values of the common shares of FAM. As of July 25, 2024, the combined net assets of ACP following the Reorganization will be approximately $830 million.

The Reorganization is expected to benefit each fund's shareholders in a number of important ways, providing greater opportunities to realize economies of scale by combining the funds' assets resulting in a larger fund. Additionally, the Reorganization is expected to help ensure the viability of the resulting combined fund by increasing scale, liquidity and marketability of the fund.

Important Information

In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited., abrdn Asia Limited, and abrdn ETFs Advisors LLC.

The information in this press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Closed-end funds are traded on the secondary market through one of the stock exchanges. Each Acquiring Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that each Acquiring Fund will achieve its investment objective. Past performance does not guarantee future results.

If you wish to receive this information electronically, please contact Investor.Relations@abrdn.com

abrdnacp.com

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For More Information Contact:
abrdn U.S. Closed-End Funds
Investor Relations
1-800-522-5465
Investor.Relations@abrdn.com

SOURCE: abrdn Income Credit Strategies Fund

View the original press release on accesswire.com

FAQ

When is the expected completion date for ACP's acquisition of FAM assets?

The reorganization is targeted to be completed before the end of September 2024 or as soon as practicable thereafter, subject to the satisfaction of customary closing conditions.

What will happen to FAM shares during the ACP reorganization?

All shares of FAM will cease trading on the New York Stock Exchange as of a date to be announced in the coming weeks. FAM shareholders will be issued new shares of ACP based on the relative net asset values of the common shares.

What are the expected benefits of the ACP and FAM fund reorganization?

The reorganization is expected to benefit shareholders by realizing economies of scale, creating a larger fund with greater opportunities, increasing liquidity and marketability, and ensuring the viability of the resulting combined fund.

What will be the approximate net assets of ACP after the reorganization with FAM?

As of July 25, 2024, the combined net assets of ACP following the reorganization are expected to be approximately $830 million.